CTO Realty Growth Strengthens Balance Sheet With $150 Million Term Loan Financing

Rhea-AI Summary

CTO Realty Growth (NYSE:CTO) has successfully closed $150 million in term loan financing, consisting of a new $125 million term loan due September 2030 and a $25 million upsizing of its existing term loan due September 2029. The proceeds were used to retire a $65 million term loan due March 2026 and reduce the revolving credit facility balance.

Both term loans will initially carry a fixed interest rate of approximately 4.2%, adjusting to about 4.7% in March 2026. The financing has enhanced the company's liquidity to approximately $165 million, extended its debt maturity profile, and provided flexibility for future investments in high-quality shopping center assets.

The 2030 Term Loan was provided by a syndicate of banks led by KeyBank National Association, with participation from several major financial institutions.

Positive

• Enhanced liquidity position to $165 million
• Extended debt maturity profile by retiring 2026 maturities
• Secured favorable initial fixed interest rate of 4.2%
• Successfully upsized existing term loan by $25 million

Negative

• Interest rate will increase to 4.7% in March 2026
• Increased total debt load with $150 million financing

Insights

Financial Analyst

CTO's $150M refinancing strengthens liquidity, extends debt maturities, and reduces near-term financial risk with favorable fixed rates.

CTO Realty Growth's recent $150 million term loan financing represents a strategic balance sheet optimization that addresses multiple financial objectives simultaneously. The company has effectively restructured its debt profile by securing a new $125 million term loan due 2030 and upsizing its existing loan due 2029 by $25 million. Most importantly, this transaction retires $65 million of debt maturing in March 2026, eliminating the majority of near-term maturities and reducing pressure on refinancing activities.

The transaction improves CTO's liquidity position to approximately $165 million, providing significant financial flexibility to pursue its core strategy of acquiring high-quality shopping centers in growth markets. The extended maturity profile creates a more balanced debt structure, reducing concentration risk and potential refinancing challenges.

The interest rate terms are particularly noteworthy in the current environment. CTO has intelligently applied existing SOFR swap agreements to initially fix rates at approximately 4.2% for both term loans. Even when certain swaps mature in March 2026, the company has already secured forward swap agreements that would result in rates of approximately 4.7% based on current leverage ratios. This forward-thinking approach to interest rate management provides predictability in debt service costs and protects against potential rate increases.

The diversified banking syndicate, led by KeyBank National Association and including seven major financial institutions, demonstrates strong lender confidence in CTO's business model and financial health. This broad support suggests CTO should maintain access to capital markets for future needs, an important consideration for REITs that rely on external financing for growth.

WINTER PARK, Fla., Sept. 25, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced the successful closing of $150 million in term loan financing. This financing includes a new $125 million term loan due September 2030 (the “2030 Term Loan”) and a $25 million upsizing of the Company’s existing term loan due September 2029 (the “2029 Term Loan”). Proceeds were used to retire the $65 million term loan due March 2026 representing the majority of the Company’s 2026 maturities and to reduce the balance outstanding on the Company’s revolving credit facility.

“We appreciate the continued support from our lending partners. This transaction enhances our liquidity to approximately $165 million as of today, extends our debt maturity profile, and provides flexibility to pursue investments in high-quality shopping center assets, consistent with our long-term strategy,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth.

Both term loans bear interest at SOFR plus a spread determined by the Company’s leverage ratio. At closing, the Company applied existing SOFR swap agreements resulting in an initial fixed interest rate for both the 2030 Term Loan and 2029 Term Loan of approximately 4.2%. In March 2026, when certain applied SOFR swap agreements mature and are replaced by existing forward SOFR swap agreements, the interest rate for both loans would adjust to approximately 4.7%, based on the Company’s current leverage ratio.

The 2030 Term Loan was provided by a syndicate of banks led by KeyBank National Association as Administrative Agent. Co-Syndication Agents included PNC Bank, National Association, Regions Bank, and Truist Bank. Additional participating banks included Raymond James Bank, Synovus Bank, and Wells Fargo Bank, National Association. The bank group providing the 2029 Term Loan remained unchanged.

About CTO Realty Growth, Inc.

CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE).

We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.

Safe Harbor  

Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words. Statements, among others, relating to the Company’s liquidity, the interest rates for the 2029 Term Loan and the 2030 Term Loan in March 2026 after replacing the applied SOFR swap agreements with the forward SOFR swap agreements, and how the transaction enhances the Company’s liquidity, extends the Company’s debt maturity profile and provides flexibility to pursue investments in high-quality shopping center assets are forward-looking statements.

Although forward-looking statements are made based upon management’s present expectations and beliefs concerning future developments and their potential effect on the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in structured investments; the impact of epidemics or pandemics on the Company’s business and the businesses of its tenants or borrowers and the impact of such epidemics or pandemics on the U.S. economy and market conditions generally; the inability of major tenants or borrowers to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their businesses; the loss or failure or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. 

There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

Contact:
Investor Relations
ir@ctoreit.com

FAQ

What is the size and structure of CTO Realty Growth's new term loan financing?

CTO secured $150 million in total financing, comprising a new $125 million term loan due 2030 and a $25 million upsize to their existing 2029 term loan.

How will CTO use the proceeds from the $150 million term loan?

The proceeds will be used to retire a $65 million term loan due March 2026 and reduce the balance of their revolving credit facility.

What is the interest rate on CTO's new term loans?

Both term loans initially carry a fixed interest rate of approximately 4.2%, which will adjust to approximately 4.7% in March 2026 based on current leverage ratios.

How does this financing affect CTO Realty Growth's liquidity position?

The transaction enhances CTO's liquidity to approximately $165 million, extends their debt maturity profile, and provides flexibility for future investments.

Which banks are involved in CTO's 2030 Term Loan syndicate?

The syndicate is led by KeyBank National Association as Administrative Agent, with PNC Bank, Regions Bank, Truist Bank, Raymond James Bank, Synovus Bank, and Wells Fargo Bank as participating institutions.